Pre Market| Tesla's US Market Share Dips Below 50% Amid Rising EV Sales
2min read Market Movements
As of the latest data, Dow Jones futures have decreased by 0.01%, while S&P 500 futures have increased by 0.17%, and Nasdaq futures have risen by 0.29%.
European Markets
The German DAX index is up by 0.57%, the UK's FTSE 100 index has increased by 0.58%, the French CAC 40 is up by 0.55%, and the Euro Stoxx 50 is up by 0.53%.
Crude Oil Futures
WTI crude oil is down by 0.27%, trading at $81.19 per barrel. Brent crude oil is down by 0.32%, at $84.39 per barrel.
Macro News Highlights
Powell Returns to Congress: After delivering his semi-annual monetary policy testimony to the Senate Banking Committee on Tuesday, Powell will present again to the House Financial Services Committee on Wednesday. Powell highlighted that positive data will bolster confidence in achieving the Fed's 2% inflation target. He warned that insufficient or delayed rate cuts could present risks to the economy and the labor market. Market analysts are mixed in their reactions but generally agree that Powell has set a foundation for a possible September rate cut, contingent on future economic data.
AI Stock Hype at a Fever Pitch According to Citi: Analysts at Citi suggest it's time to consider profit-taking on AI-related stocks. Investor sentiment towards AI-influenced stocks is at its highest since 2019, with many companies expected to outpace free cash flow predictions. While fears of a broad price bubble are minimal, volatility appears to be on the horizon.
Buffett Indicator Warning: Seabreeze Partners Management's Doug Kass points out that the Buffett Indicator—which compares the total market value of U.S. stocks to the latest GDP estimate—suggests U.S. equities are expensive. Other valuation metrics like the P/E ratio and EV/Sales ratios are also signaling that stocks are overvalued relative to historical benchmarks.
U.S. Fiscal Outlook Raises Concerns: The Congressional Budget Office (CBO) once again highlights the daunting U.S. fiscal landscape, projecting that government expenditure will outpace revenue by $1.9 trillion in 2024, with debt expected to reach 122% of GDP by 2034.
Company-Specific News
Tesla's Market Share Drops Below 50% for the First Time in the U.S.: Tesla's share of the U.S. electric vehicle market has fallen below 50% as overall EV sales in the country soar to new highs. The firm's stock price continues to climb, having risen for ten consecutive days. Increased competition is seen leading to sustained pricing pressures.
Tesla's Optimus Robot Update: Elon Musk confirmed on the social media platform X that the design for the second-generation humanoid robot Optimus is set to be completed later this year, describing the new design as 'special.'
NVIDIA's AI GPU Production Surge: NVIDIA's AI GPU H200 began mass production in late Q2, with substantial deliveries expected in Q3. The strong demand for H200 is likely to persist into 2025. NVIDIA's GB200 NVL36 unit is expected to enter volume production in Q4.
Microsoft and Apple Withdraw from OpenAI Board: Amid increasing regulatory scrutiny, Microsoft and Apple have stepped down from their observer roles on the OpenAI board. Microsoft is confident in OpenAI's direction and feels the role is no longer necessary.
Apple's PC Shipments Surge Heads Market Recovery: According to IDC, Apple saw its PC shipments jump by 21% year-over-year in Q2, leading the overall market recovery for PCs, which is witnessing a resurgence in demand driven by factors like AI.
TSMC Q2 Sales Soar Beyond Expectations: Boosted by the AI boom, TSMC's Q2 sales have exceeded forecasts, drawing positive reactions from Wall Street analysts who have raised target stock prices, expecting strong advanced chip demand to bolster the firm's pricing power.
Baidu's Self-Driving Taxis Expand: Baidu's 'Apollo Go' robotaxi service has extended its test operations to 11 cities, testing fully driverless services in major cities like Beijing, Wuhan, Chongqing, Shenzhen, and Shanghai.